Question
Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath
Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given:
Standard Quantity, Standard Rate, Standard Unit Cost
Shampoo: 2.7 ounces, $0.30 per ounce, $0.81
Water: 25 gallons, $0.05 per gallon, $1.25
Direct labor: 1.55 hour, $12.00 per hour, $18.60
During the month of July, Collins employees gave 450 baths. The actual results were 775 ounces of shampoo used (cost of $286.75), 7,500 gallons of water used (cost of $600), and labor costs for 390 hours (cost of $5,226).
Required: Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July. Calculate Suds & Cuts, direct labor variances for the month of July.
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